Learn about bankruptcy and other alternatives
Try to gather as much information as possible about bankruptcy in order to lessen the tension associated with the process. Clarify all of your concerns with the bankruptcy attorney concerning your situation.
halt your credit card usage
Stop using your credit card if filing for bankruptcy is in your future. In bankruptcy cases, charges and cash advances made within 90 days of the bankruptcy filing are scrutinized closely. The sooner you cease using your credit card after declaring bankruptcy, the better. A financially responsible person is required by law to know when to stop spending money that is not available, particularly when filing for bankruptcy.
Employ a bankruptcy attorney with whom you are at ease.
You should develop complete confidence in your attorney. Therefore, when selecting an attorney, you must have the ability to assess character and rely on your intuition. To find a reputable and competent attorney, you can search for sole practitioners, small firms, or family-run businesses. If you locate an attorney who handles all paperwork and reviews drafts, you can relax completely.
Organize your financial documents
Obviously, you will contact a bankruptcy attorney as soon as you intend to file for bankruptcy. But prior to contacting the attorney, you must resolve a few matters. Organize all required financial documents containing all the necessary information to demonstrate the amount of debt you face and the amount of money you have. Then, your bank's attorney will examine your budget to determine the ""disposable"" or excess income that can be used to pay off creditors.
Prepare to meet your attorney.
When you meet with your attorney for the first time, you should be prepared to answer all of his or her financial questions. If you are prepared with all necessary information prior to your initial consultation with your attorney, he or she will be a more cooperative assistant.
Always keep in mind that you must be truthful throughout the process. Whoever conceals assets or falsifies documents may face criminal charges. Again, you may not want to draw out the bankruptcy process for too long. Therefore, make yourself accessible whenever your attorney requests assistance.
Maintain a list of all creditors.
This is also part of your process's correct organization. Before meeting with your bankruptcy attorney, you must maintain an accurate record of all debts owed and gain a clear understanding of your financial situation.
Start a new existence with a more responsible credit score
Insolvency should always be viewed as a fresh start for a prosperous future based on lessons learned. Learn more about the steps required to rebuild credit after bankruptcy by attending credit counseling and debtor education classes, which are required in bankruptcy cases.
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